Cato Corporation (CATO)vsLululemon Athletica Inc. (LULU)
CATO
Cato Corporation
$2.38
+1.06%
CONSUMER CYCLICAL · Cap: $46.00M
LULU
Lululemon Athletica Inc.
$105.22
+0.60%
CONSUMER CYCLICAL · Cap: $11.25B
Smart Verdict
WallStSmart Research — data-driven comparison
Lululemon Athletica Inc. generates 1624% more annual revenue ($11.09B vs $643.67M). LULU leads profitability with a 12.8% profit margin vs -0.9%. LULU appears more attractively valued with a PEG of 1.13. LULU earns a higher WallStSmart Score of 60/100 (C).
CATO
Hold40
out of 100
Grade: F
LULU
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+75.3%
Fair Value
$12.22
Current Price
$2.38
$9.85 discount
Margin of Safety
+70.2%
Fair Value
$589.81
Current Price
$105.22
$484.59 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Attractively priced relative to earnings
Safe zone — low bankruptcy risk
Every $100 of equity generates 30 in profit
Reasonable price relative to book value
Areas to Watch
Smaller company, higher risk/reward
ROE of -3.7% — below average capital efficiency
Revenue declined 6.2%
Earnings declined 83.3%
Weak financial health signals
Revenue declined 4.3%
Earnings declined 5.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : CATO
The strongest argument for CATO centers on Price/Book. PEG of 1.17 suggests the stock is reasonably priced for its growth.
Bull Case : LULU
The strongest argument for LULU centers on P/E Ratio, Altman Z-Score, Return on Equity. PEG of 1.13 suggests the stock is reasonably priced for its growth.
Bear Case : CATO
The primary concerns for CATO are Market Cap, Return on Equity, Revenue Growth.
Bear Case : LULU
The primary concerns for LULU are Piotroski F-Score, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
CATO profiles as a turnaround stock while LULU is a declining play — different risk/reward profiles.
LULU carries more volatility with a beta of 0.92 — expect wider price swings.
LULU is growing revenue faster at -4.3% — sustainability is the question.
LULU generates stronger free cash flow (225M), providing more financial flexibility.
Bottom Line
LULU scores higher overall (60/100 vs 40/100). CATO offers better value entry with a 75.3% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Cato Corporation
CONSUMER CYCLICAL · APPAREL RETAIL · USA
The Cato Corporation is a specialty clothing and fashion accessories retailer primarily in the southeastern United States. The company is headquartered in Charlotte, North Carolina.
Lululemon Athletica Inc.
CONSUMER CYCLICAL · APPAREL RETAIL · USA
lululemon athletica inc. The company is headquartered in Vancouver, Canada.
Visit Website →Compare with Other APPAREL RETAIL Stocks
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